Published by Global Banking & Finance Review®
Posted on July 31, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleEuroChem lost a $243 million lawsuit against SocGen and ING in the UK due to sanctions on founder Andrey Melnichenko. The company plans to appeal.
LONDON (Reuters) -Fertiliser company EuroChem, founded by Russian billionaire Andrey Melnichenko, on Thursday lost its London lawsuit against Societe Generale and ING over 212 million euros ($243 million) of bond payments.
EuroChem sued the banks in August 2022 after they refused to pay under the bonds that were issued in relation to the construction of a Russian fertiliser plant by Maire subsidiary Tecnimont.
Societe Generale and ING said they were unable to pay because European sanctions were imposed on Melnichenko in March 2022, the month after Russia's invasion of Ukraine.
His wife Aleksandra Melnichenko was subsequently placed under sanctions in June 2022, after Reuters reported Andrey Melnichenko had reassigned his companies to her.
EuroChem argued at a trial at London's High Court earlier this year that the bonds could lawfully be paid.
But Judge Robert Bright dismissed EuroChem's lawsuit, ruling that Andrey Melnichenko has "de facto control" of the EuroChem subsidiary that would benefit from the bonds and the banks were "prohibited from honouring the bonds and paying under them".
EuroChem said in a statement: "We strongly disagree with this decision. We intend to appeal, with legal documents due to be filed in September."
Societe Generale declined to comment, and ING did not respond to a request for comment.
Tecnimont, which said it may have been required to reimburse the banks if EuroChem had succeeded in enforcing the bonds, welcomed the ruling.
Fabio Fagioli, Maire's group general counsel, said in a statement that the ruling brought "an end to years of unnecessary litigation".
($1 = 0.8734 euros)
(Reporting by Sam Tobin; editing by Barbara Lewis)
EuroChem lost its lawsuit against Societe Generale and ING, with the judge ruling that the banks were prohibited from making payments due to sanctions on Andrey Melnichenko.
The banks stated they could not pay because European sanctions were imposed on Andrey Melnichenko following Russia's invasion of Ukraine.
EuroChem intends to appeal the decision, with legal documents expected to be filed in September.
Tecnimont welcomed the ruling, stating it may have been required to reimburse the banks if EuroChem had succeeded in enforcing the bonds.
Andrey Melnichenko is a Russian billionaire and the founder of EuroChem, who was placed under sanctions by European authorities.
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